Telco Customer Churn

Telco Customer Churn

In this article, we analyze and predict customer churn for Telco Customer Churn data.

Dataset

Columns Description
customerID Customer ID
gender Whether the customer is a male or a female
SeniorCitizen Whether the customer is a senior citizen or not (1, 0)
Partner Whether the customer has a partner or not (Yes, No)
Dependents Whether the customer has dependents or not (Yes, No)
tenure Number of months the customer has stayed with the company
PhoneService Whether the customer has a phone service or not (Yes, No)
MultipleLines Whether the customer has multiple lines or not (Yes, No, No phone service)
InternetService Customer’s internet service provider (DSL, Fiber optic, No)
OnlineSecurity Whether the customer has online security or not (Yes, No, No internet service)
OnlineBackup Whether the customer has an online backup or not (Yes, No, No internet service)
DeviceProtection Whether the customer has device protection or not (Yes, No, No internet service)
TechSupport Whether the customer has tech support or not (Yes, No, No internet service)
StreamingTV Whether the customer has streaming TV or not (Yes, No, No internet service)
StreamingMovies Whether the customer has streaming movies or not (Yes, No, No internet service)
Contract The contract term of the customer (Month-to-month, One year, Two years)
PaperlessBilling Whether the customer has paperless billing or not (Yes, No)
PaymentMethod The customer’s payment method (Electronic check, Mailed check, Bank transfer (automatic), Credit card (automatic))
MonthlyCharges The amount charged to the customer monthly
TotalCharges The total amount charged to the customer
Churn Whether the customer churned or not (Yes or No)

Exploratory Data Analysis

Customer Churn by Gender

What stands out from the graph is that nearly 27% of the customers churned, and there is a balance between the two genders among churned customers.

Customer Churn by Senior Citizen

It can be seen that only 25.5% of the senior customers were churned.

Customer Churn by Senior Citizen and Gender

Senior citizens churned much less than non-senior citizens in both genders.

Customer Churn by Partner

Over 64% of churned customers did not have any partners.

Customer Churn by Dependents

Over 82 percent of churned customers did not have any dependents.

Customer Churn by Tenure

Customers with a higher tenure tend to churn less.

Customer Churn by Contract

The majority of churned customers were on a month-to-month base contract.

Customer Churn by Payment Method

Customers with an automatic payment method churned less.

Churn by Monthly Charges and Tenure

What can be seen from this left plot is that as the monthly charges increase, the churn rate increases as well. However, it seems that customers with monthly charges around 100$ or above churn less than customers with a monthly charge of 80 to 100.

Moreover, we can see from the right plot that the churn rate decreases as tenure increases.

Alternatively, we can also demonstrate the above figure as follows

For classification and modeling, please see the next files in the directory.